RBP Insights

RBP

The revenue growth necessary to support the current stock price. Required Business Performance^® is calculated using third-party valuation models including discounted cash flow that use the current stock price as the primary input.

RBP Probability

The likelihood that management will deliver the Required Business Performance^® to support the stock price. It is calculated by fitting the company’s historical revenue growth to a distribution, then finding the company’s Required Business Performance within this historical distribution.

RBP Methodology

Uses third-party valuation models including discounted cash flow to determine what the stock’s current price implies in terms of future free cash flow and revenue (Required Business Performance^® ) as well as the calculation of the likelihood that management can deliver the Required Business Performance^®, known as RBP^® Probability.

Guggenheim RBP^® Blended Index and Guggenheim RBP^® Large-Cap Defensive 100 Index are owned by Guggenheim Partners Investment Management, LLC and its affiliates (collectively, "Guggenheim"), and are licensed by New Age Alpha. These indices are calculated by S&P Dow Jones Indices. New Age Alpha calculates the Required Business Performance (RBP) Probabilities used in the index construction.

Using the RBP^® Methodology, we calculate the likelihood management can deliver the Required Business Performance, known as the RBP Probability for every stock in our universe. Stocks are then selected for inclusion in the index based in part on their RBP probabilities.